Wells settles with Freddie on mortgage claims
Wells Fargo in $869 million settlement with Freddie Mac over claims on soured mortgages
WASHINGTON (AP) -- Wells Fargo & Co. has agreed to an $869 million settlement with Freddie Mac over claims on home loans it sold to the government-controlled mortgage finance company.
The agreement announced Monday by Wells Fargo involves mortgages sold to Freddie before January 2009. Wells said the amount of the agreement was adjusted to reflect credits for previous claims payments, resulting in a cash payment to Freddie of about $780 million. Freddie and its bigger sibling Fannie Mae demanded that Wells Fargo and other big banks buy back mortgages they sold that later soured in the housing bust.
San Francisco-based Wells Fargo said it reached the agreement with Freddie on Friday. Citigroup Inc. also agreed last week to pay $395 million to Freddie to settle similar claims.
